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13. (3 points) Each of the two stocks, A and B, are expected to pay the same amount of dividend in the upcoming year. The
13. (3 points) Each of the two stocks, A and B, are expected to pay the same amount of dividend in the upcoming year. The expected growth rate of dividend is 6% for both stocks, however, the systematic risk measure (beta) of stock A is higher than that of stock B. Suppose that a constant growth DDM can be applied to value these two stocks. Which stock has a higher intrinsic value? a A) Stock A and B have the same intrinsic value. B) Stock A has a higher intrinsic value. C) Stock B has a higher intrinsic value. D) Not enough information to tell
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